Ukrainian Update

Regal Petroleum PLC
20 February 2006


Immediate Release                                        20 February 2006


                              REGAL PETROLEUM PLC
                           ('Regal' or 'the Company')

                                Ukrainian Update


The Directors are pleased to announce that the Supreme Court of Ukraine has
ruled in favour of Regal and dismissed the final appeal brought by
Chernihivnaftogasgeologia ('CNGG') with respect to the distribution of assets
within their former joint-venture.


In June 2004 the exploration/pilot production licences in which Regal had a 75
per cent. interest expired. Subsequently, Regal was awarded a 100 per cent.
interest in two 20 year production licences. Contemporaneously with the
expiration of the exploration/pilot production licences, the joint-venture
arrangement Regal had with CNGG also expired.


In the course of the dissolution of the joint-venture, an action was brought
before the local Poltava Court in order to distribute the assets of the
joint-venture to the partners. In August 2005 the Poltava Court ruled that the
physical assets of the joint-venture be distributed to Regal and that CNGG be
compensated for the value of its 25 per cent interest in the joint-venture.


CNGG lodged an appeal with the Kiev Court of Appeal contesting the Poltava Court
ruling, which appeal was dismissed in October 2005.


CNGG lodged a further appeal to the Supreme Commercial Court of Ukraine which
was also dismissed in December 2005.


CNGG then lodged a further appeal to the Supreme Court of Ukraine, which is the
final appellate court in Ukraine. The decision in this appeal was issued earlier
today, when the Supreme Court dismissed this appeal, thereby finally ruling in
Regal's favour in this matter.


In respect of the legal challenge brought by CNGG against the Ministry of
Environmental Protection with respect to the validity of Regal's production
licences in the Ukraine, which was referred to in the Company's announcements
dated 31 January and 16 February 2006, Regal is awaiting notification of a
hearing date for its further appeal to the Supreme Administrative Court of
Ukraine to establish the validity of its licences.



For further information, please contact:

Regal                                   Tel: [phone]
Roger Phillips, Finance Director

Buchanan Communications                 Tel: [phone]
Bobby Morse







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